Is there upside in losing the AAA rating?

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The Future Fund seems to think so, via Fairfax:

The best defence against the threat of the loss of Australia’s AAA rating is a convincing strategy to manage the transition away from mining investment, Mark Burgess, the former Future Fund boss, has argued.

“The world looks at Australia for whether a commodity-based economy can navigate to the next stage,” he said, “because that’s the way global investors think. We’re a commodity nation.”

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.